A sorry saga, but you were treated fairly

I had my car stolen in April this year and was asked to return the insurance policy, which I did. I was assuming the premiums would stop then, so I took my eye off the ball, so to speak.

Returning to car ownership this month I realised the company Saga (now seemingly renamed Acromas) had continued to take my monthly premiums all along – five monthly payments of more than £62 – and I have therefore been paying for a car I did not have … a total of £314.

The insurer says that because the theft is considered a "fault" claim, I am not entitled to any refund. What do you think? And is there anything else I can do to retrieve my money? FG, Manchester

On this occasion we are going to side with the insurer and say that what Saga has done is perfectly reasonable. When you make any claim you are still required to pay the rest of the premium, even if you have chosen to spread the payments over the year. Some insurers will demand the whole sum be repaid at once if you make a claim.

When you buy insurance, you do so for the forthcoming year. Many insurers let buyers spread the payments; however, you are not buying insurance by the month – even if it appears that way – so you were still liable for the rest of premium.

As you say, a theft is treated as a fault claim – even though it is not your fault – because the liability rests with you. Happily, you now have another car, and you can be sure that you have been treated fairly.

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